Fintech
Fintech Industry Players Weigh In on PM Modi’s Vision for Mumbai as Global Fintech Capital
In his first visit to Maharashtra after the recent Lok Sabha elections, Prime Minister Narendra Modi laid the foundation stone for projects worth Rs 29,396 crore. He announced his vision of making Mumbai the world’s fintech capital and Maharashtra a leading tourism state.
While this announcement has created excitement among the public, stakeholders in the fintech ecosystem have a lot to say. Many are drawing comparisons between Bengaluru, known as Silicon Valley and India’s startup hub, and Mumbai, already the financial capital of India.
Vishal Sharma, co-founder and CEO of AdvaRisk, an ICICI and NABARD-backed fintech startup based in Pune, acknowledges that Mumbai is undeniably India’s financial capital and, to some extent, its fintech capital. He believes that PM Modi’s ambition to make the city the fintech capital of the world could provide a significant boost to fintech startups, but it also comes with its own set of challenges.
Raja Debnath, managing director of Veefin Solutions Ltd, a listed SME based in Mumbai, says the goal of establishing Mumbai as the global fintech capital is exactly the push the sector needed.
“With regulators and financial markets based in Mumbai, building a strong fintech ecosystem is a natural progression. Launching multiple investment projects in the city will give Mumbai an edge in attracting both established companies and startups in the fintech sector,” he adds.
According to Invest India, the country is among the fastest growing fintech markets in the world, with a market size of $584 billion in 2022 and projected to reach $1.5 trillion by 2025, with Mumbai claiming to be at the top of the list. Now, while the city holds so much importance, fintech founders say it lacks a “robust infrastructure.”
Mohit Bedi, co-founder and chief business officer of Kiwi, a Bengaluru-based fintech that recently opened an office in Mumbai, points out that fintechs need to interact with the RBI, NPCI, banks and aggregators in Mumbai. However, office space and tech workforce are more expensive in Mumbai than Bengaluru. A workstation in Bengaluru with WeWork would cost around Rs 8,000-10,000 per month, while in Mumbai’s BKC, it costs Rs 30,000-35,000. Moreover, tech professionals prefer Bengaluru for its homegrown tech giants and multinational facilities. “To meet the technological needs of the fintech sector and create a safe investment environment, Mumbai must develop a robust infrastructure. In addition to these projects, building a tangible digital infrastructure, modernizing the power grid, and developing robust data centers, along with fostering a culture of innovation, can cement Mumbai’s position as a world-class fintech hub.”
Incentivising investments and promoting Mumbai as a talent hub will attract resources, says Raj N, founder of Zaggle, a publicly traded B2B SaaS fintech player, adding that partnerships and innovation programmes will spur collaboration.
There are numerous challenges, points out Yashoraj Tyagi, CEO of CASHe, an AI-based financial wellness platform based in Mumbai, while stressing that navigating complex regulations, attracting top talent in tech and finance, ensuring a robust digital and physical infrastructure, protecting startup investments, and managing cybersecurity threats are essential for development.
If key challenges are resolved, ecosystem stakeholders believe Mumbai has the potential to become a major fintech hub within 5-10 years.